The proposed program evaluation research will continue the study "Community alternatives for Treatment of Schizophrenia" (MH 20123). Preliminary findings from two pilot groups (N equals 30 each) suggest that the predominantly interpersonal methods of treatment used with an experimental group of patients are significantly more effective than "usual" (phenothiazine-oriented in a Community Mental Health Center) treatment accorded patients in the control group. We propose to continue to compare outcomes of two new groups (N equals 60 each) of young, first-break schizophrenics randomly assigned to two treatments. The experimental group is treated in a community residence in which the guiding philosophy holds that the psychotic experience is a crisis that should be taken seriously, and that within the context of warm, supportive, facilitative human relationships the experience can often be transformed into one of growth and learning for the patient. The Soteria (experimental) model of psychosocial treatment is a response to several contemporary trends: 1) Acknowledgement of phenothiazines as limited in their ability to effect levels of psychosocial functioning and of accumulating evidence for their long-term toxicity (e.g. Crane 1973). Soteria can provide a viable alternative to the current reliance on phenothiazines for the treatment of schizophrenia. 2) Progressive shifting of treatment from inpatient institutions to community based programs (e.g. Community Mental Health Centers). Soteria, as a logical extension of this trend, can provide a surrogate family experience without resorting to hospitalization when existing resources (e.g. school, church, home, etc.) have not met the needs of very disturbed young people. Data obtained at admission, 6 weeks post-admission, discharge, 6, 12 and 24 months post-admission from a variety of points of view which assess outcome in terms of symptoms, levels of psychosocial functioning, and psychological growth will be compared across groups. Short and long-term comparative costs will be compared, and subgroups of responders and non-responders to the different treatments will be identified.